Claiming the second grant under the SEISS
Claims for the second grant under the Self-Employment Income Support Scheme (SEISS) can be made from 17 August 2020 onwards.
Who can claim?
A self-employed individual or member of a partnership who meets the eligibility criteria and whose business has been adversely affected by Coronavirus on or after 14 July 2020 can claim the second grant under the SEISS. As with the first grant, HMRC will write to traders who they believe to be eligible to make a claim.
The eligibility criteria is as for the first scheme. To qualify, the individual must:
- have submitted their self-assessment tax return for 2018/19 by 23 April 2020;
- traded in 2019/20;
- be continuing to trade when they claim the grant, or would be except for the Coronavirus pandemic; and
- intend to continue to trade in 2020/21.
The grant is limited to traders whose trading profits are not more than £50,000 either for 2018/19 or on average for the three years 2016/17 to 2018/19 inclusive. Profits from self-employment must also comprise at least 50% of the individual’s income.
Meaning of ‘adversely affected’
The grant is only available if the claimant’s business has been ‘adversely affected’ on or after 14 July 2020. HMRC will accept this to be case where the claimant is unable to work because they are shielding, self-isolating, on sick leave because of Coronavirus or have caring responsibilities because of the virus. HMRC will also accept that the business has been ‘adversely affected’ by the virus if the claimant has had to stop trading temporarily, scale down their operations or incur additional costs because:
- their supply chain was interrupted;
- they had fewer or no customers or clients;
- staff were unable to come to work;
- one or more of their contracts have been cancelled; or
- they had to buy protective equipment so that they could trade at a social distance.
The claimant must keep evidence to show how their business was ‘adversely affected’ by Coronavirus.
Amount of the grant
The second grant, like the first grant, is based on average trading profits for the three tax years 2016/17, 2017/18 and 2018/19. The second grant is set at 70% of three months’ average profits, subject to a total maximum grant of £6,570.
Claims to be made by claimant online
As with the first grant, claims must be made online by the claimant themselves; claims cannot be made by a tax agent or adviser on the claimant’s behalf as this will trigger a fraud alert which will delay payment of the grant. To claim, the claimant will need their Government Gateway user ID and password, details of the UK bank account into which the payment should be made (together with the name on the account and the address to which it is linked).
When making the claim, the claimant will also have to confirm that their business was adversely affected by Coronavirus on or after 14 July 2020.
Claims for the second grant under the SEISS must be made by 19 October 2020.
Partner note: www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme.